| Isle of Man Trust Formation | |
| The Isle of Man is a separate legal jurisdiction from the United Kingdom. Trust management, especially for high net worth UK citizens, has long been a valuable business for the island. The following information will help you determine whether Isle of Man Trust formation is the best solution to meet your personal or corporate objectives: | |
| Advantages of Isle of Man Trust Formation | |
| 1. | Isle of Man Trust law is closely modeled on English Trust law. |
| 2. | The Isle of Man has a mature legal system and financial framework to support Trust formation. |
| 3. | Isle of Man Trusts are supported by a sophisticated financial services industry on the island. |
| 4. | Isle of Man Trust income is tax-free if the Beneficiaries are resident outside the Isle of Man and if the income is sourced outside the Isle of Man. |
| 5. | There is no capital gains tax and no inheritance, gift or estate taxes in the Isle of Man. |
| Disadvantages of Isle of Man Trust Formation | |
| 1. | Isle of Man Trustees may be obliged to file tax returns when they are resident in the Isle of Man. Isle of Man Trusts with Beneficiaries resident in the Isle of Man are subject to income tax of 18% on undistributed income. |
| 2. | The Isle of Man still has a Rule Against Perpetuities, requiring beneficiaries to be identified, at least by class. |
| Types of Isle of Man Trust Formation | |
| Discretionary Trust | |
| This type of Trust is where the trustees decide how income and capital of the Trust assets is applied for the Beneficiaries' benefit. The Settlor can give guidance as to how he would like the Trustees to exercise its discretion, but cannot control them. | |
| Life Interest or Interest in Possession Trust | |
| A Trust where the income of the Trust assets automatically belongs to specified Beneficiaries. | |
| Purpose Trust | |
| This type of Trust is designed to fund a specific purpose. An independent 'enforcer' must be appointed to ensure that the trustees fulfil their duties. These trusts are subject to rules concerning perpetuities. | |
| Charitable Trust | |
| This type of Trust is designed for charitable purposes. | |
| Healy Consultants fees for Isle of Man Trust formation | |
| Healy Consultants fees for Isle of Man Trust formation are US$7,500 in Year 1 US$4,500 from Year 2 onwards.Healy Consultants fees to act as Isle of Man resident Trustee amount to US$1,950 (together with a refundable deposit of US$1,250). | |
| Contact Us | |
| For more information on Isle of Man Trust formation, email email@healyconsultants.com or telephone us at (+65) 6735 0120. | |
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